Diversified Energy Company acquired another well-decommissioning business in the US Appalachian Basin, its third this year.
ConServ is a privately held plugging and well services provider run by David and Scott Freshwater based in Spencer, West Virginia.
Diversified Energy said the acquisition will allow it retire more wells, scale its own internal well plugging programme and provide additional third-party revenues from other operators and state agencies.
As part of the acquisition, the gas producer will add the ConServ well services and plugging division to the existing Next LVL Energy asset retirement platform.
Diversifier’s plugging programme now includes 15 well rigs, an increase of 70% on the first quarter of 2022.
The company has made a commitment to retire at least 200 wells per year across its Appalachian footprint.
No details of the consideration for Conserv or its financial performance were released.
Brad Gray, chief operating offer said Diversified Energy is now one of the largest full-service plugging providers in the region.
"This acquisition serves to not only highlight our long-standing commitment as responsible assets stewards and operators from acquisition to retirement, but also our dedication to doing so in a manner that is beneficial to all of our stakeholders and the environment.”